Apple is a company known for its independence in designing nearly all the components used in its devices, giving it a competitive edge.
While Apple does not manufacture these components itself, it partners with specialized firms like TSMC. These manufacturers are eager to collaborate with Apple, and in exchange, Apple secures control over its supply chain.
However, Apple’s independence is less pronounced in display world. The company works with major players such as Samsung and LG Display for this component.
To gain greater control over its display supply and lessen its reliance on partners like Samsung, Apple is reportedly investing heavily in microLED technology. Here are the details:
MicroLED is an emerging display technology that promises improvements over both LCD and OLED screens. Unlike these technologies, MicroLED is self-emissive, meaning it does not require a backlight.
This characteristic allows for deeper blacks, higher contrast ratios, and improved power efficiency. Additionally, MicroLED displays are highly durable and can be produced in various sizes.
Recognizing the potential of MicroLED, Apple is dedicating over $1 billion to research and development in this area.
The company is reportedly constructing its own microLED manufacturing facilities, which could accelerate the market introduction of microLED displays and potentially reduce costs.
Despite facing challenges in scaling up production, Apple is committed to advancing this technology.
Although it is too early to determine when Apple will release its first microLED product, the company’s commitment to the technology is evident.
Should microLED displays fulfill their promise, they could revolutionize the display industry and reinforce Apple’s position as a leader in the mobile market.
Furthermore, Apple’s move to develop its own displays could impact its existing suppliers, Samsung and LG. In 2021, Samsung earned $10.3 billion from Apple, and LG earned $3.6 billion.
If Apple succeeds in producing its own displays, these suppliers might face a significant reduction in revenue from Apple products.
